Suggested Language For The Program Manager'S Exemption Certificate Form (Page 2 of 5) in pdf

the reason it was present in the state. Once completed, any remaining time in the 20-day period

will continue to run, unless another exemption applies. Repairs to aircraft are taxable unless

specifically exempt.

For example: John Doe, (a nonresident) bought his aircraft on July 2, 2010, in South Carolina.

John Doe immediately flew his aircraft to Florida for flight training. The aircraft remained in

Florida exclusively for flight training for 30 days before returning to South Carolina. John Doe

may still return to Florida for 20 days without imposition of Florida use tax during the 6-month

period after the date he purchased the aircraft.

Fractional Aircraft Ownership Programs

A "fractional aircraft ownership program" is defined as a program that meets the requirements of

Federal Aviation Administration Regulation Title 14, part 91, subpart K, Code of Federal

Regulations, except that the program must include a minimum of 25 aircraft owned or leased by

the business or affiliated group, as defined in section 1504(a) of the Internal Revenue Code.

These aircraft must be used in the fractional aircraft ownership program.

Maximum Tax on Sales or Use

Effective July 1, 2010, the maximum tax imposed on the sale or use of a fractional ownership

interest in a fractional aircraft ownership program is $300. The tax cap applies only where the

sale is made by the Program Manager or the fractional aircraft ownership interest is transferred

upon the Program Manager’s approval.

The sale or lease of an aircraft to the fractional aircraft ownership Program Manager is

exempt from tax. The Program Manager must be registered with the Department of Revenue

and must present to the dealer a certificate stating that the purchase or lease is for aircraft

primarily used in a fractional aircraft ownership program. See below for suggested certificate

language.

For example, FlightAir operates a fractional aircraft ownership program pursuant to Federal

Aviation Administration Regulation Title 14, part 91, subpart K, Code of Federal Regulations.

FlightAir currently operates with 10 aircraft in its fractional aircraft ownership program. On July

1, 2010, FlightAir buys 2 more aircraft for its program. Both of these purchases are subject to

Florida sales tax, since FlightAir did not operate a fractional aircraft ownership program with 25

aircraft.

Repairs

The sale or use of any parts or labor used in the completion, maintenance, repair, or overhaul of

an aircraft, to the Program Manager, operating a fractional aircraft ownership program with at

least 25 aircraft, is exempt from tax. The Program Manager must be registered with the

Department and present to the dealer a certificate stating that the repair or maintenance is for

aircraft primarily used in a fractional aircraft ownership program.

Suggested Language for the Program Manager’s Exemption Certificate

This is to certify that the aircraft purchased or leased, or that the parts or labor used in the

completion, maintenance, repair, or overhaul of an aircraft, on or after _____________(date)

Suggested Language For The Program Manager'S Exemption Certificate Form Page 2